Corporate History Timeline
2011
- Company initiated sales of gas produced from Shouyang Block
- Completed registered direct offering for gross proceeds of $17.5 million
- Netherland, Sewell & Associates, Inc. (NSAI) report indicates Shouyang Block, Best Estimate of NPV10 of $1.23 billion
2010
- Drilled and completed 24 new wells.
- Fracture stimulated 38 wells.
- Signed gas sales agreement with China United Coal Bed Methane and Gouxin Energy Development Company in June.
- Completed $34 MM secondary offering in August.
- Completed Resources Study with Netherland Sewell and Associates in November.
- Began process for Chinese certification of reserves.
- Automated nine producing wells in 1H Pilot area.
- Began construction of gas gathering system in Q4, completed in January 2011.
- Nominated first gas sales in December for delivery in January 2011.
2009
- Formed strategic alliance with Arrow Energy International Pte Ltd.
- This alliance provided additional capital to fund planned work programs to satisfy capital expenditure requirements for all three PSCs for 2010.
- Received approval from Ministry of Commerce to extend Phase III of the exploration period in the Shouyang Block to June 30, 2011 from June 30, 2009.
- Drilled six horizontal wells, twelve vertical wells, six deviated wells and three parameter wells in the Shouyang Block.
- In December 2009 we commenced an eight well winter drilling program at the Shouyang Block which was completed in the Spring of 2010.
- Implemented improved fracture stimulation techniques based on methods discovered by Far East Energy during our 2009 work program.
2008
- Drilled three deviated wells and one short reach horizontal well in Shouyang Block to maximize water production so critical water desorption pressure could be reached as soon as possible and to determine the optimal approach to minimize cost and maximize gas recovery rates.
- Performed hydraulic fracturing operations on seven vertical wells. This validated the use of new fracturing techniques and increased water production in all seven wells.
- Drilled our first horizontal well in the Qinnan Block into the #3 coal seam.
- Drilled three parameter wells on the southern end of the Qinnan Block to test for coal seam permeability, reservoir pressure, coal thickness and gas content.
- Drilled two deviated wells in the Enhong-Laochang Area, these wells were designed to provide additional data on how best to exploit the area in coming years.
2007
- In the Shouyang Block we drilled and completed a horizontal well and extended the horizontal reach of an existing well.
- Drilled an underbalanced vertical well and cavitated the well bore to accelerate the dewatering process.
- Drilled two vertical wells and started two additional vertical wells.
- Entered in to a multi-well drilling contract.
- Signed contract with Chinese company to drill the first horizontal well in the Qinnan Block
- Continued geological and geophysical data collection efforts in the Enhong and Laochang areas of the Yunnan Province.
- Entered into a stock subscription agreement with the International Finance Corporation.
2006
- Announced presence of coalbed methane gas from the first horizontal well drilled in the Shouyang Block.
- Completed drilling of the second horizontal well in the Shouyang Block and began production testing.
2005
- Spudded two horizontal wells in the Shouyang Block.
- Completed drilling of one in November and began production testing.
2002 - 2004
- Entered into Production Sharing Contracts with China United Coalbed Methane Company on two fields located in central China.
- Agreements stipulated that Far East Energy and CUCBM would jointly explore, develop, produce and sell coalbed methane gas in an area covering 1,073 square kilometers in the Enhong and Laochang areas of Yunnan Province.
- Acquired 1.0 million acres of coalbed methane in the Shanxi Province of Northern China via farmout agreements with ConocoPhillips.
